The Globe and Mail reports in its Tuesday, Feb. 24, edition that RBC Dominion Securities analyst Greg Pardy has downgraded Imperial Oil to "underperform" from "sector perform" because its valuation appears "stretched." The Globe's David Leeder writes in the Eye On Equities column that Mr. Pardy continues to target the shares at $116. Analysts on average target the shares at $120.03. Mr. Pardy says in a note: "Our fundamentally constructive stance toward Imperial Oil reflects its solid leadership team, long-life, low-decline upstream portfolio, cash flow diversification via its refining and chemical segments, strong balance sheet, free cash flow generation, commitment to shareholder returns and solid operating performance. That said, the relative outperformance and valuation of Imperial Oil's common shares appears to have disconnected from its fundamentals. We have downgraded Imperial Oil given higher expected relative returns elsewhere. ... We believe that Imperial Oil should trade in line with our North American major peer group given its fundamentals. ... Imperial Oil's announcement to undergo restructuring activities is aimed at annual efficiency gains of about $150-million in 2028 [and beyond."]